The Merchant Cash Advance Application Process A Guide For Business Owners
THE MERCHANT CASH ADVANCE APPLICATION PROCESSA GUIDE FOR BUSINESS OWNERS(WHAT TO KNOW, NO MATTER WHO YOU APPLY TO)By: The Merchant Cash Advance Resourcewww.merchantcashadvanceresource.comA site dedicated to independent insight and resources on the Merchant Cash Advance IndustryThe Merchant Cash Advance Resource www.merchantcashadvanceresource.com 2011
1. COMPLETING AN APPLICATIONThe Majority of Merchant Cash Advance providers require both business and personalinformation when applying. Social security numbers and signatures are required toauthorize a credit pull. How your credit affects your approval depends on the underwritingcriteria of the individual firm. All of them are different.The Merchant Cash Advance Resource www.merchantcashadvanceresource.com 2011
2. SUBMITTING MERCHANT PROCESSING STATEMENTSThese are separate from your bank statements. Many business owners assume that sincetheir bank account has a record of all deposits from their merchant processor, that bankstatements alone are sufficient. This is not the case. While bank statements will be askedfor, the merchant processing statements are necessary for information like sales volume bycard type, return frequency, chargeback history, processing fees, monthly costs, batchfrequency, average transaction size, and processor imposed reserves.The Merchant Cash Advance Resource www.merchantcashadvanceresource.com 2011
The Merchant Cash Advance Resource www.merchantcashadvanceresource.com 2011
3. SUBMITTING BUSINESS BANK STATEMENTSThis should be self‐explanatory. All pages of each bank statement will be required. Sendingthe first page summary does not suffice. The Merchant Cash Advance provider may usethese to analyze daily cash flow, verify activity from your merchant processing statements,and review what funds are being used for.4. SUBMITTING ADDITIONAL DOCUMENTSEvery Merchant Cash Advance provider is different. Any of the following may be requested: Articles of Incorporation K‐1 of recent business tax return (to verify ownership breakdown) Business property lease Driver’s license or photo ID of owner(s) Voided check (where funds will be deposited) Recent business tax return Financial Statements5. VERBAL REFERENCESUnderwriters may contact your vendors, your business property landlord, or the bankholding the mortgage on the business property. They will try to determine if you are ingood standing and likelihood you will continue to operate at that location unhindered.6. PHONE INTERVIEWAll Merchant Cash Advance providers will speak with you at some point during the processto review business information, discuss your use of funds, and gauge your understandingand willingness to follow through with the contract terms.The Merchant Cash Advance Resource www.merchantcashadvanceresource.com 2011
7. SITE INSPECTIONSome Merchant Cash Advance providers hire an independent inspection firm to visit yourlocation, verify the address, examine inventory, and take note of how many credit cardmachines are on site.8. ESTABLISH THE METHOD OF REPAYMENTIf the recovery of future receivables is structured to occur via split funding, you may beconverted to a new merchant processing company. This is not the case for all providers.You will generally need to process cards for 2 full business days in a manner that theprovider is able to monitor prior to fundingIf the recovery of future receivables is structured to occur via a Lockbox, then this will bethe very last step in the process. You will generally need 2 full business days worth ofmerchant sales to be deposited into this account prior to funding.If the recovery of future receivables is structured to occur via direct debit, a test debit mayoccur prior to funding to ensure the process will work.9. COMPLETION/ FUNDS TRANSMITTED TO YOUOnce you receive funds, the Merchant Cash Advance provider will recover their purchasedreceivables in accordance with the contract.The Merchant Cash Advance Resource www.merchantcashadvanceresource.com 2011
GLOSSARYMerchant Cash Advance: This is a purchase of a business's future credit/debit card receivables at adiscounted price. It is very similar to Accounts Receivable factoring, with the exception that these receivablesdo not yet exist at the time of sale. The Merchant Cash Advance provider retrieves their purchase bywithholding a specified percentage of each card sale transacted. Business owners should be aware that thereis not a blanket cost or retrieval percentage for this financial product. There are many providers and all ofthem are required to evaluate your business from their own perspective and create a personalized offer. Mostwill present you with several options with different structures to choose from.Advance Amount: The amount advanced to the business owner is really called the Purchase Price. It is thediscounted price paid to the business in exchange for their future credit/debit card receivables.Retrieval Rate: This is the percentage withheld from each credit/debit card transaction and forwarded to theMerchant Cash Advance provider. This rate is predetermined in the contract and under all normalcircumstances cannot be changed. It is often referred to as the holdback percentage or withhold rate.Payback Amount: This is the cost of the advance and should be referred to as the Purchased Amount. TheMerchant Cash Advance provider pays a discounted price (the Advance) to the business owner for a specifiedpurchase of future credit/debit card sales.Split Funding: Split Funding is a method used for a Merchant Cash Advance provider to recover theirpurchased credit/debit card receivables. The merchant processor plays a key role since they are the ones thatactually "split" the business's deposits between the business and the Merchant Cash Advance provider. Thepercentage split is determined by the Retrieval Rate.The Merchant Cash Advance provider must have a pre‐existing split partnership with the merchant processorfor this to be possible. More than likely the business owner will need to change their merchant processor toobtain the funds. Some providers can structure alternatives to the Split Funding method.Lockbox Funding: A lockbox is a bank account responsible for the collection of payments. An alternative tothe Split Funding method is Lockbox Funding. This involves the Merchant Cash Advance provider opening alockbox account for a business. The business must instruct their merchant processor to deposit their salesinto this account until the advance obligations have been fulfilled. The business’s credit/debit card sales willbe deposited into this account and the bank will appropriately split the funds in accordance with the RetrievalRate. The business and the advance provider receive their split by bank wire.Restricted Industries: Not every business that accepts credit cards can apply for funding. The businessmodel alone may be cause for disqualification. Restricted Industry types are by no means uniform across theindustry, nor does being high risk imply that an approval is not possible. Business owners should consult withtheir sales representative to determine their options.The Merchant Cash Advance Resource www.merchantcashadvanceresource.com 2011
The Merchant Cash Advance Resource www.merchantcashadvanceresource.com 2011 THE MERCHANT CASH ADVANCE APPLICATION PROCESS A GUIDE FOR BUSINESS OWNERS (WHAT TO KNOW, NO MATTER WHO YOU APPLY TO) By: The Merchant Cash Advance Resource www.merchantcashadvanceresource.com A site
May 02, 2018 · D. Program Evaluation ͟The organization has provided a description of the framework for how each program will be evaluated. The framework should include all the elements below: ͟The evaluation methods are cost-effective for the organization ͟Quantitative and qualitative data is being collected (at Basics tier, data collection must have begun)
Silat is a combative art of self-defense and survival rooted from Matay archipelago. It was traced at thé early of Langkasuka Kingdom (2nd century CE) till thé reign of Melaka (Malaysia) Sultanate era (13th century). Silat has now evolved to become part of social culture and tradition with thé appearance of a fine physical and spiritual .
On an exceptional basis, Member States may request UNESCO to provide thé candidates with access to thé platform so they can complète thé form by themselves. Thèse requests must be addressed to esd rize unesco. or by 15 A ril 2021 UNESCO will provide thé nomineewith accessto thé platform via their émail address.
̶The leading indicator of employee engagement is based on the quality of the relationship between employee and supervisor Empower your managers! ̶Help them understand the impact on the organization ̶Share important changes, plan options, tasks, and deadlines ̶Provide key messages and talking points ̶Prepare them to answer employee questions
Dr. Sunita Bharatwal** Dr. Pawan Garga*** Abstract Customer satisfaction is derived from thè functionalities and values, a product or Service can provide. The current study aims to segregate thè dimensions of ordine Service quality and gather insights on its impact on web shopping. The trends of purchases have
2. Merchant Banking 22 - 37 Introduction - Definition - Origin - Merchant Banking in India - Merchant Banks and Commercial Banks - Services of Merchant Banks - Merchant Bankers as Lead Managers - Qualities Required for Merchant Bankers - Guidelines for Merchant Bankers - Merchant Bankers' Commission - Merchant Bankers in the
mint payments - virtual terminal & merchant portal user guide 1.0 2 contents chapter 1: merchant portal - logging in 3 chapter 2: merchant portal - home page 6 chapter 3: merchant portal - setting up your company 7 chapter 4: merchant portal - user registration 10 chapter 5: merchant portal - mpos device setup 14 chapter 6: merchant portal - transaction, exporting data, refunds 15
ner, Gladys Thomas, Charles McKinney, Mary Pelfrey, Christine Qualls, Dora Turner, David Petry, Cleone Gor don, Dorothy Scruggs, Phyllis Rice, Jacquelyn White, Rowena Napier, William Smith, Annie Smith, Ruth Ann Workman, Barbara Johnson and Letha Esque. The awards were presented by MU President Robert B. Hayes on March 4. Faculty meet Tuesday A general faculty meeting has been scheduled for .
